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Level 1

How to ensure UI tax is not withheld? Per WI state, I'm not required to pay unemployment insurance as an owner and only employee.

 
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QuickBooks Team

How to ensure UI tax is not withheld? Per WI state, I'm not required to pay unemployment insurance as an owner and only employee.

Thanks for posting to the Community, @mark134.

 

In QuickBooks Online, you have an option there to exempt your UI tax withholdings as an employee. You'll find it under the 5th section of the employee's Pay in the Workers menu.

 

Let me show you how:

  1. Go to the Workers menu and then select Employees.
  2. Select the employee on the list of employees.
  3. Click the Pencil icon beside the Pay label.
  4. Click the Pencil icon on the 5th section and then hit Got it!
  5. Check the box for the WI UI tax.
  6. Hit Done.

There you'll be exempted from WI SUI tax. Here, I've added a screenshot. I'm using CA SUI since my sample employee's address is in California.
1.PNG

I'll add this article as your reference: Wisconsin Payroll Tax Compliance. It includes Tax Forms and Unemployment Tax.
 

Please feel free to leave a message for assistanc I'll ne happy to help. Take care!

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Level 1

How to ensure UI tax is not withheld? Per WI state, I'm not required to pay unemployment insurance as an owner and only employee.

Hi, thanks for the quick response!  I'm having some difficult finding the UI checkbox you mentioned.  When I click on the employee, I'm presented with the following sections:

 

(1) Personal info

(2) What are Mark's withholdings

(3) How often do you pay Mark?

(4) How much do you pay Mark?

(5) Does Mark have any deductions?

(6) How do you want to pay Mark?

(7) Just a few more details? (e.g., DOB and Hire Date)

 

There is no pencil icon next to the pay amount and I also looked under withholdings to see if there were any UI options but couldn't find anything. 

 

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Moderator

How to ensure UI tax is not withheld? Per WI state, I'm not required to pay unemployment insurance as an owner and only employee.

Good to have you back, @mark134!

 

You can select the Pencil in the What are Mark's withholdings box so you can exempt your Wisconsin UI tax.

  1. Go to What are Mark's withholdings.
  2. Select the Pencil icon.
  3. Scroll down the page to the Tax exemptions section.
  4. Put a checkmark on the WI SUI selection box.
  5. Click Done.

I'm adding a reference here to learn more about how to exempt your employee for tax withholding.

 

You can also check out the link shared by my colleague above for more information about your state and other payroll compliance tasks.

 

Keep me posted in the comments if you need more help. Thanks!

Highlighted
Level 1

How to ensure UI tax is not withheld? Per WI state, I'm not required to pay unemployment insurance as an owner and only employee.

Unfortunately, that section of the withholdings simply says "Contact a payroll specialist to set up an exemption for Mark" when I click and expand that section. 

Highlighted
Moderator

How to ensure UI tax is not withheld? Per WI state, I'm not required to pay unemployment insurance as an owner and only employee.

Thank you for your prompt response, @mark134.

 

I've tried creating an employee with the same tax exemption as yours and I also receive the same message. The message can be related to the new W4 updates mandated by the IRS. I'd suggest reaching out to our Payroll Care Team so a specialist can help you set it up correctly.

  1. Go to Help.
  2. Select Contact Us.
  3. Enter Employee Tax Exemption in the What can we help you with? field.
  4. Click Let's talk.
  5. Select Get a callback or Start a chat.

I'm adding a reference here to learn more about our available support hours and other payroll-related tasks.

 

Reach out to me if you have any other questions. Have a good one!

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